Investment: Understanding the Time Value of Money for Monthly Payments, Present and Future Values, Interest Rates, and Inflation.
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Monthly Payment Present and Future Value Interest Rate Inflation Investment Time Value of Money When it comes to investing and managing finances, there are several important concepts to understand. Two of the most fundamental concepts are time value of money and inflation. Both of these concepts are crucial to understanding how to make investments that will provide future security. The time value of money is the idea that money is worth more today than it will be in the future. This is because money can be invested and earn interest. Therefore, a dollar today is worth more than a dollar in the future. The amount that money will be worth in the future is known as its future value. The present value of an investment is the amount that it is worth today. Future value ...